Sub-provincial Tax Sharing,Transfer Payments and County Economic Growth
Based on new taxcentralization hypothesis,this paper examines the joint effects of tax sha-ring and transfer payment on county's economic growth using the panel data of counties from 1999 to 2009.Theoretically,the incentive effects of tax decentralization and tax re-centralization exist simultaneously and have strong heterogeneity.Empirically,county economic growth rate will be reduced by 0.167％-0.311％when VAT share increased by 1％,which proves that the existence of the incentive effect of tax re-central-ization will weaken this effect if the scale of provincial transfer payment increases.There exists incentive effects of tax decentralization in the eastern regions,the economically developed regions and the wealthy re-gions,whereas incentive effect of tax re-centralization in the western regions,poor areas,ethnic minority areas and ecological functional areas.The increase in the scale of provincial transfer payments will suppress these two effects.The main mechanism of the incentive effect of tax re-centralization on county economic growth is that the county government increases the proportion of productive public expenditure favoring in-frastructure construction and chooses the structural transformation of tertiary industry favoring high tax char-acteristics.
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万方数据
